The Range Expands its Footprint with Acquisition of Homebase Locations
The retail landscape continues to shift as The Range, owned by CDS Superstores, expands its presence across the UK by converting former Homebase locations into its own brand stores. Following Homebase’s fall into administration in late 2024, CDS agreed to acquire approximately 70 Homebase branches, a move aimed at revitalizing the struggling DIY retailer and preserving jobs. The initial phase of this transformation saw six Homebase stores in Glasgow, Bournemouth, Birmingham, Newton Abbot, Felixstowe, and Blyth rebranded as The Range. Now, three additional locations in Leicester, Stroud, and Blandford Forum are slated for a January 31st reopening, further solidifying The Range’s expansion strategy.
The acquisition and rebranding process involves integrating The Range’s diverse product offerings while retaining some elements of the Homebase brand. Several new stores will feature "Garden Centres by Homebase" and "Kitchens by Homebase" sections, capitalizing on Homebase’s established presence in these specific market segments. This hybrid approach aims to appeal to existing Homebase customers while introducing them to the wider selection and value proposition offered by The Range. CDS plans a phased rollout, targeting the opening of up to 10 new-format stores each month until the complete portfolio of acquired Homebase locations is converted. This ambitious timeline underscores CDS’s commitment to rapidly expanding The Range’s reach and market share.
The acquisition deal has been lauded for its potential to save jobs. CDS Superstores, the parent company of both The Range and Wilko, has indicated that the move secured the employment of around 1,600 Homebase staff members. Beyond the physical stores, CDS also acquired the Homebase website, signaling an intention to revitalize the brand’s online presence. This comprehensive approach to the acquisition suggests a long-term strategy for integrating Homebase into the CDS portfolio and maximizing its potential within the competitive retail market. Alex Simpkin, CEO of CDS Superstores, emphasized the company’s dedication to preserving Homebase’s heritage while incorporating the value and broader product range that defines The Range brand.
However, not all Homebase locations were included in the CDS acquisition. Approximately 74 Homebase branches, employing 2,000 staff, faced an uncertain future and the risk of permanent closure. While a deadline of November 29th was set for potential buyers to express interest in these remaining sites, the outcome remains unclear. Prior to the administration and subsequent acquisition, Homebase had already announced the closure of six stores, with two more in Wales commencing closing down sales. Additionally, three locations in Derry, Inverurie, and Omagh, along with a branch in Glenrothes, were scheduled for closure. This complex situation highlights the ongoing challenges within the retail sector and the difficult decisions facing retailers in a rapidly changing market.
Amidst the Homebase restructuring, other retailers have seized opportunities to expand their own portfolios. B&Q, a direct competitor of Homebase, announced its intention to acquire five former Homebase stores, pending landlord approval. This move reflects the ongoing competition within the DIY and home improvement market and the strategic maneuvering by retailers to capitalize on available opportunities. This acquisition, if finalized, would further reshape the retail landscape, highlighting the ongoing dynamism and adaptability within the sector.
The broader context of these events is the ongoing struggle within the retail sector. A combination of high inflation, squeezed consumer spending, and the increasing popularity of online shopping has created a challenging environment for brick-and-mortar retailers. Several prominent retail chains have fallen into administration in recent years, including Wilko, Ted Baker, and The Body Shop, though some have been partially rescued through acquisition deals. The acquisition of Homebase by The Range, while offering a lifeline to some stores and staff, also reflects the ongoing pressures and restructuring occurring within the retail industry. The future landscape of the retail sector remains uncertain, as businesses adapt to changing consumer behavior, economic pressures, and increased competition.
